January 27, 2013

KOLKATA: Former finance
minister Asim Dasgupta today warned of an impending crisis in the state because
of an unprecedented rise in mobilisation of deposits by chit funds, willy nilly
holding the Trinamul government responsible for pushing small savers towards a
bubble that may burst.

“The chit funds that are
mobilising money now will start facing repayment obligation after a few years…
A crisis is awaiting as the model is unsustainable,” Dasgupta told a news
conference this afternoon.

The growth of chit funds —
sources said the number may not be less than 3,000 — in the state has become a
political hot potato for the Mamata Banerjee government as the Opposition has
blamed the ruling party for the mushrooming of these entities, which promise
high returns to depositors.

Depositors are either
promised high rates of interest — at times around 30 to 40 per cent a year — on
their deposit or different varieties of assets like land or property at
attractive places at a future date.

Sources in the state finance
department said the annual collections by the chit fund companies would not be
less than Rs 15,000 crore.......